Chinese manufacturers are stepping up efforts to build a deeper presence in Southeast Asia, tailoring products to local demand and investing more in on-the-ground operations as the region becomes a growing focus of their overseas expansion plans, said analysts and business executives.

They said the expansion reflects a broader shift in the overseas strategies of Chinese companies, as more manufacturers move beyond exporting from China to building production capacity, local supply networks and market expertise closer to customers.

The comments came ahead of the 23rd China-ASEAN Expo, which is scheduled to be held in Nanning, Guangxi Zhuang autonomous region, from Sept 17 to 21.

By the end of July, cumulative two-way investment between China and the Association of Southeast Asian Nations had exceeded $515 billion, according to data from the Ministry of Commerce.

Li Guanghui, dean of academic affairs of the China-ASEAN School of Economics at Guangxi University in Nanning, Guangxi Zhuang autonomous region, said Southeast Asia is becoming a testing ground for Chinese companies building a global presence, as success increasingly requires them to develop capabilities overseas rather than simply replicate business models developed at home.

Li said the diversity of ASEAN markets is pushing Chinese companies to become more flexible, with strategies increasingly shaped around local consumers, business practices and competitive conditions rather than a single regional approach.

Wang Liping, director-general of the Commerce Ministry's department of Asian affairs, said China and ASEAN have more room to deepen investment cooperation in emerging areas such as the digital economy, green development and the blue economy.

"Companies on both sides can make greater use of artificial intelligence, big data and the internet of things to better connect production, logistics and trade," said Wang, adding that greater digital integration will help companies respond more quickly to changes in demand and build more resilient regional supply chains.

Such investment is increasingly taking the form of production and operations within ASEAN markets. Safewell Group, a Ningbo, Zhejiang province-based security products manufacturer, built its business selling traditional products such as safes and gun cabinets in Europe and the United States.

The company has since moved up the value chain from mechanical security products to smart systems incorporating biometric access and connected alarms, while also expanding its manufacturing footprint with a factory established in Indonesia last year.

Safewell produces higher-value components, including locking systems and electronic modules, in China, while sourcing sheet metal and structural parts locally in Indonesia. Its Indonesian plant handles final assembly, testing and regional deliveries.

Wang Lei, the company's vice-president, said Indonesia's growing number of middle-income consumers and expanding retail sector are driving demand for security products across homes, hotels, shops and financial outlets. Safewell's exports to ASEAN markets rose 12 percent year-on-year between January and August.

More broadly, Ningbo's exports to ASEAN rose 23.7 percent year-on-year to 82.89 billion yuan ($12.35 billion) in the first seven months of 2026, data from Ningbo Customs showed.

Guoguang Electric Co, a manufacturer of speakers and acoustic components in Guangzhou, Guangdong province, has increased its production capacity in Vietnam as part of a broader effort to diversify its manufacturing operations and better serve overseas customers.

While the company established its Vietnam plant in 2019, its Chinese operations continue to supply components such as antennas, connectors and adapters to the facility for the production of Bluetooth speakers, according to information released by Guangzhou Customs.

Luo Lijuan, the company's logistics director, said about 70 percent of Guoguang Electric's customers are overseas.

The investment in Vietnam followed an assessment of logistics routes, transportation costs, rules of origin and customer requirements.

"Having production in Vietnam gives us greater flexibility in fulfilling overseas orders and reduces our reliance on capacity in a single market," said Luo.

zhongnan@chinadaily.com.cn